The state's surprisingly strong growth in income tax withholding has been led by high-tech sectors, but many other sectors are showing big gains as well.
California income tax collections this month to date are 7.8 percent above last February, and cumulative collections since late March are up 6.4 percent over the same period in 2019-20.
California withholding collections through January 25 were up 7 percent from the comparable days in 2020, and withholding since March 23 is up 6.1 percent.
California income tax withholding in December to date is up 19 percent from 2019, and collections since March 23 are up 5 percent.
In this post, we look at one unforeseen labor market shift that has important implications for the state’s fiscal picture: compared to past recessions, a larger share of workers who have lost jobs during the pandemic do not have children.
The California labor market collapsed in late March and early April due to the coronavirus disease 2019 (COVID-19) pandemic. In response to COVID-19, state and local officials took steps to limit the spread of the disease. The Governor issued a statewide stay-at-home order on March 19. Since that time, public health officials have issued various directives limiting daily activities. These efforts, as well as health concerns, depressed economic activity across the state. As a result, many employers cut jobs. In this post, we take a closer look at how the pandemic has affected different industries and different types of workers in California.
The coronavirus disease 2019 (COVID-19) pandemic has upended the way many Californians work. As we described in the first post in this series, many workers have lost their jobs due to the pandemic and job losses have disproportionately affected women, younger workers, less educated workers, and Latino workers. Other workers have had to change the way they work, either by taking extra precautions in how they interact with customers and colleagues or by temporarily working from home instead of the office or job site. In this post, we take a closer look at this group: people whose jobs entail frequent person-to-person contact (frontline workers) and those who likely have been able to work from home (remote workers).
Income tax withholding this week kept pace with the same week in 2019, and collections since late March are 3.5 percent above 2019.
Income tax withholding again ran ahead of last year's pace, and is up 3.6 percent from last year since late March.
Withholding this week was up 6 percent from the same week last year, pushing the cumulative gain since late March to 3.5 percent.
Income tax withholding kept pace with the same week in 2019, and collections since March are up 3.4 percent from 2019.